Although some might not agree with me, I much prefer to use my money to pay for a car upfront on other investments. Cars has always been an expense to me and it can stay that way until my investments options yield less than interest I need to pay on the cars. My accountant seems to like Chattel finance.

BMW rates and terms are generally very good, and you can always negotiate. Principal and interests are paid unlike recently found out one of my staff signed some stupid 13.1% interest paying interest first type loan arrangement with Esander, with the full interest due if contract is broken with a 7 year term. BMW rarely charge their break cost of $500 and it is proportional to terms left.

^ Commercial Hire Purchase has some tax advantages if you are fortunate enough to be in a position to claim a percentage of the use of your car as a tax deduction. Especially handy if you turn your car over frequently - ie less than 3 years.

All to do with the claiming of depreciation ( up to LCT ), and of course interest and costs of running the vehicle.

I think you get confused a bit here - CHP is also known is Commercial Hire Purchase (same thing as corporate hire purchase depends on who they are marketing to) - it has nothing to do with corporate. Basically it is an arrangement were the ownership stays with the financer until all the payments (plus the balloon) has been made and ownership will be transferred to you. Someone can correct me if I am wrong, but if the purchase price of the car is less than the LCT threshold, then they are treated as a lease - ie the who repayment amount is deductible.

For us who tends to buy cars over the LCT threshold, the point of CHP is a bit redundant as any lease arrangement over LCT is treated as a loan, and hence we tend to take out a chattel mortgage where it is just like a regular loan, but it is guaranteed by the chattel (which is the car). The advantage is that you take ownership of the car straight away - which specifically in the GFC handouts, that's the only way we can do it to claim the extra write-off.

Usually the requirement for CHP is a declaration that it is for majority business use and you don't have to be a corporate or a business to access the product. I believe there is some change or tightening of law that the lender needed to satisfied that the car is going to be for business use if you are buying in your own name. I think there were some issues with some consumers who was offered the products and ended up learning the hard way that they are no longer protected by the consumer law, as CHP and Chattel Mortgage are both Commercial products.

I think you get confused a bit here - CHP is also known is Commercial Hire Purchase (same thing as corporate hire purchase depends on who they are marketing to) - it has nothing to do with corporate. Basically it is an arrangement were the ownership stays with the financer until all the payments (plus the balloon) has been made and ownership will be transferred to you. Someone can correct me if I am wrong, but if the purchase price of the car is less than the LCT threshold, then they are treated as a lease - ie the who repayment amount is deductible.

For us who tends to buy cars over the LCT threshold, the point of CHP is a bit redundant as any lease arrangement over LCT is treated as a loan, and hence we tend to take out a chattel mortgage where it is just like a regular loan, but it is guaranteed by the chattel (which is the car). The advantage is that you take ownership of the car straight away - which specifically in the GFC handouts, that's the only way we can do it to claim the extra write-off.

Usually the requirement for CHP is a declaration that it is for majority business use and you don't have to be a corporate or a business to access the product. I believe there is some change or tightening of law that the lender needed to satisfied that the car is going to be for business use if you are buying in your own name. I think there were some issues with some consumers who was offered the products and ended up learning the hard way that they are no longer protected by the consumer law, as CHP and Chattel Mortgage are both Commercial products.

I am not qualify to advise on tax and I just do whatever my accountant says. Anyway, I was comparing chattel mortgage and CHP and not lease. However, thanks for letting us know the difference with CHP and lease.